If you’re an entrepreneur or business owner looking to establish a company in Dubai, obtaining a mainland license is crucial. A mainland license, also known as a Dubai mainland company formation, allows you to operate your business on the mainland of Dubai, with 100% foreign ownership and access to wider markets. In this comprehensive guide, we’ll take you through the process of obtaining a mainland license in Dubai, including its advantages, types, and the step-by-step procedure.
Benefits of Securing a Mainland License in Dubai
1: 100% Foreign Ownership Permitted
One of the primary advantages of a mainland license in Dubai is the ability to own 100% of your company. This level of ownership is not available in other business setups, making it an attractive option for foreign entrepreneurs and investors.
2: Complete Ownership of the Company
With a mainland license, you have complete control over your company’s operations, decision-making processes, and profits. This level of autonomy allows for greater flexibility and strategic planning.
3: Access to Broader Markets
Businesses with a mainland license can operate across the UAE and benefit from the country’s strategic location, which serves as a gateway to the Middle East, Africa, and Asia markets.
4: Reputational Advantages
Obtaining a mainland license in Dubai is a testament to your company’s credibility and commitment to the UAE market. This can enhance your business’s reputation and open new opportunities and partnerships.
Types of Mainland Trade Licenses in Dubai
1: Commercial License
A commercial license in Dubai is suitable for businesses engaged in various commercial activities, such as trading, import/export, and general trading.
2: Professional License
Professional licenses are required for businesses offering professional services, such as consulting, engineering, legal services, or healthcare.
3:Industrial License
An industrial license is necessary for businesses involved in manufacturing, production, or industrial activities within the UAE.
Step-by-Step Process for Acquiring a Dubai Mainland License
Select Business Activity
The first step in obtaining a mainland license is to identify and select the appropriate business activity for your company. This decision should be based on your business goals and the nature of your operations.
Choose a Legal Structure
Determine the legal structure that best suits your business requirements. The most common options are a Limited Liability Company (LLC) or a Sole Establishment.
Reserve Your Trade Name
Once you’ve selected your business activity and legal structure, you’ll need to reserve a trade name for your company. This name must be unique and comply with the UAE’s naming regulations.
Secure a Local Service Agent (LSA) (if required).
Certain business activities may require the appointment of a Local Service Agent (LSA) to facilitate your company’s operations in Dubai. Your business setup consultant can guide you through this process if necessary.
Apply for Initial Approval
Submit your initial approval application to the Department of Economic Development (DED) in Dubai, along with the required documents and fees. This step involves obtaining preliminary approval for your business setup.
Obtain External Approvals
Depending on your business activity, you may need to obtain additional approvals from relevant authorities, such as the Dubai Municipality or the Dubai Chamber of Commerce and Industry.
Rent an Office
Secure a physical office space in Dubai to establish your business presence. This office must meet the specific requirements set by the DED.
Get Ejari for the Office/Commercial Space
Ejari is a mandatory registration process for all rental properties in Dubai. You must register your office or commercial space using the Ejari system.
Pay License Fees
Once all the necessary approvals and requirements are met, you’ll need to pay the applicable license fees to the DED to obtain your mainland license.
Receive Your Business License in Dubai
After completing all the required steps and making the necessary payments, you’ll receive your mainland license, allowing you to operate your business legally in Dubai.
Cost of a Mainland License in Dubai
The cost of obtaining a mainland license in Dubai can vary depending on several factors, such as the type of business activity, legal structure, and specific requirements. It’s essential to consult with a reputable business setup company to get an accurate estimate of the costs involved.
Incorpyfy: Your Partner for Business Success in Dubai
At Incorpyfy, we are a leading business setup company in Dubai that helps entrepreneurs and businesses establish their presence in the UAE. Our team of experts will guide you through obtaining a mainland license in Dubai, ensuring a smooth and hassle-free experience.
With our comprehensive services and in-depth knowledge of the local regulations, we can assist you in selecting the right business activity, choosing the appropriate legal structure, and navigating the intricate processes involved in obtaining a mainland license.
As your trusted partner, Incorpyfy will be with you every step of the way, ensuring that your business is set up for success in Dubai’s dynamic and thriving market.
Conclusion Obtaining a mainland license in Dubai is a strategic decision that can unlock numerous opportunities for your business. Following the steps outlined in this guide and partnering with a reputable company like Incorpyfy, you can navigate the process seamlessly and establish a strong foothold in the UAE market.
Remember, at Incorpyfy, we are dedicated to helping you achieve your business goals in Dubai. Contact us today to learn more about our services and how we can assist you in obtaining a mainland license in Dubai.
FAQS About Complete Guide on Obtaining a Mainland License in Dubai
What are the eligibility criteria for obtaining a mainland license in Dubai?
To be eligible for a mainland license in Dubai, you must meet the following criteria:
- Legal structure: Your business must be structured as a Limited Liability Company (LLC) or a Sole Establishment. If you opt for an LLC, you’ll need at least one local partner (UAE national or company) who will hold a minimum of 51% shares, or you can choose a Sole Establishment structure for 100% foreign ownership.
- Business activity: Your proposed business activity must be permitted under the mainland license regulations in Dubai. The Department of Economic Development (DED) maintains a list of approved activities, and you’ll need to select an activity that aligns with your business goals.
- Office space: You must secure a physical office space in Dubai that meets the DED’s requirements. This includes adherence to specific size and location guidelines and obtaining necessary approvals from relevant authorities.
- Capital requirements: Depending on your chosen business activity and legal structure, you may need to meet certain minimum share capital requirements. For example, the minimum share capital for an LLC in Dubai is typically AED 300,000 (approximately USD 82,000).
- Documentation: You’ll need to provide various documents, such as a detailed business plan, proof of financial capability, passport copies of the shareholders/owners, and any additional documents required by the DED or other relevant authorities.
It’s essential to consult with a reputable business setup company in Dubai to ensure you meet all the eligibility criteria and have the necessary documentation in order.
What are the advantages of obtaining a mainland license over other business licenses in Dubai?
Obtaining a mainland license in Dubai offers several advantages over other types of business licenses, such as a free zone license or a professional license. Here are some key benefits:
- 100% foreign ownership: With a mainland license, you can enjoy 100% foreign ownership of your company, provided you opt for the Sole Establishment structure. This level of ownership is not available in free zones, where you are typically required to have a local partner.
- Access to the UAE market: Businesses with a mainland license can operate across the UAE and benefit from the country’s strategic location, which serves as a gateway to the Middle East, Africa, and Asia markets. Free zone companies, on the other hand, are generally restricted to operating within their respective free zones.
- No import/export restrictions: Mainland companies can import and export goods and services without restrictions, unlike free zone companies, which may face certain limitations on trading within the UAE mainland.
- Reputational benefits: Obtaining a mainland license in Dubai is often seen as a testament to a company’s credibility and commitment to the UAE market, which can enhance its reputation and open doors to new opportunities and partnerships.
- Flexibility in business activities: Mainland licenses offer more flexibility in the business activities you can engage in as long as they are permitted under the DED regulations. On the other hand, free zone licenses may have more stringent restrictions on the types of activities allowed.
It’s important to note that while a mainland license offers these advantages, it may also come with higher setup costs and more stringent compliance requirements than other business licenses in Dubai.
What is the role of a Local Service Agent (LSA) in obtaining a mainland license in Dubai?
A local service agent (LSA) is crucial to obtaining a mainland license in Dubai, particularly for certain business activities. The primary responsibilities of an LSA include:
- Facilitating the license application process: An LSA assists in navigating the complex process of applying for a mainland license, ensuring that all necessary documentation and approvals are in order. They act as liaisons between the company and the relevant authorities, such as the Department of Economic Development (DED) and other government entities.
- Providing local expertise: LSAs have in-depth knowledge of the local business environment, regulations, and cultural nuances. They can provide valuable guidance and insights to help foreign companies understand and comply with local laws and customs.
- Representing the company: It is mandatory to appoint an LSA for certain business activities, such as general trading or import/export. In these cases, the LSA serves as the legal representative of the company within the UAE, acting on its behalf in various matters.
- Assisting with legal and administrative matters: LSAs can assist with various legal and administrative tasks, such as obtaining visas, labour permits, and other necessary documentation for setting up and operating the business in Dubai.
- Providing ongoing support: Even after the company is established, the LSA can continue to provide support and guidance on various matters related to compliance, renewals, and other legal or administrative requirements.
It’s important to note that the necessity of appointing an LSA and the specific services they provide may vary depending on the nature of your business activity and the requirements set forth by the DED. A reputable business setup company in Dubai can advise you on whether an LSA is required for your particular case and assist you in finding a suitable LSA if needed.
What are the main types of external approvals required to obtain a mainland license in Dubai?
Depending on your business activity and the nature of your operations, you may need to obtain various external approvals from relevant Dubai authorities before obtaining a mainland license. Here are some of the main types of external approvals that may be required:
- Dubai Municipality Approvals: If your business involves activities related to construction, food and beverage, or other services that fall under the jurisdiction of the Dubai Municipality, you’ll need to obtain their approval. This may include approvals for zoning, building permits, and health and safety regulations compliance.
- Dubai Department of Tourism and Commerce Marketing (DTCM) Approvals: Businesses operating in the tourism, hospitality, or event management sectors may require approvals from the DTCM, which regulates these industries in Dubai.
Dubai Civil Aviation Authority (DCAA) Approvals: Companies involved in aviation-related activities, such as aircraft maintenance, repair, or charter services, will need approvals from the DCAA. - Dubai Health Authority (DHA) Approvals: If your business involves healthcare services, pharmaceuticals, or any other activities related to the medical field, you’ll need to obtain approvals from the DHA to ensure compliance with healthcare regulations.
- Dubai Chamber of Commerce and Industry (DCCI) Approvals: Certain business activities may require registration with the DCCI, which serves as the official representative body for the private sector in Dubai.
- Environment and Protected Areas Authority (EPAA) Approvals: Businesses involved in activities that may have an environmental impact, suchas manufacturing or waste management, may need the EPAA’s approval to ensure compliance with environmental regulations.
It’s important to consult with a reputable business setup company in Dubai to understand the specific external approvals required for your business activity. They can guide you through the process and ensure you obtain all necessary approvals before proceeding with your mainland license application.
What is the typical timeline for obtaining a mainland license in Dubai?
The timeline for obtaining a mainland license in Dubai can vary depending on various factors, such as the complexity of your business activity, the completeness of your application documents, and the efficiency of the approval processes. However, there’s a general estimate of the timeline:
- Initial preparation and consultation: 1-2 weeks. During this phase, you must consult with a business setup company, understand the requirements, gather necessary documents, and prepare your business plan.
- Trade name reservation and initial approval: 2-4 weeks. The process of reserving your trade name and obtaining initial approval from the Department of Economic Development (DED) can take several weeks, depending on the availability of the desired name and the completeness of your application.
- External approvals (if required): 2-6 weeks. Suppose your business requires external approvals from various authorities, such as the Dubai Municipality or the Dubai Health Authority. In that case, this process can take anywhere from 2 to 6 weeks, depending on the specific approvals needed and the efficiency of the respective authorities.
- Office space procurement and Ejari registration: 1-3 weeks Securing a suitable office space in Dubai and completing the Ejari registration process (mandatory for all rental properties) can typically take 1 to 3 weeks, depending on the availability of office spaces and the promptness of the landlord.
- Final license issuance: 1-2 weeks. Once all the necessary approvals and requirements are met, paying the license fees and obtaining your mainland license from the DED can take 1 to 2 weeks.
